Impco hopes unit spin-off will boost investment focus. (Corporate Focus).THERE was a time when so-called concept stocks were popular on Wall Street. In the case of Cerritos-based Impco Technologies Inc., the concept calls for a future when people will be driving around in cars powered by hydrogen fuel cells. It's a dream that stands a good chance of coming true, but the question is when. Automakers are targeting 2003 for limited production in test fleets of the first fuel-cell-powered vehicles, which would emit only water as exhaust. The most optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op forecasts envision mass production of these vehicles by around 2010, more conservative projections put it in 2020, perhaps. That pace hasn't been fast enough for investors in Impco, which began a major fuel-cell development program six years ago. Its stock went as high as $52.88 in March 2000, but since then capital markets have turned cautious about funding futuristic fu·tur·is·tic adj. 1. Of or relating to the future. 2. a. Of, characterized by, or expressing a vision of the future: futuristic decor. b. ideas that aren't yet delivering tangible results. Recently, Impco traded around $13. The price drop has affected Impco's ability to keep raising capital for both the budding fuel-cell business and its traditional business making storage and electronic control systems for alternative fuels such as natural gas and propane propane, CH3CH2CH3, colorless, gaseous alkane. It is readily liquefied by compression and cooling. It melts at −189.9°C; and boils at −42.2°C;. , which was growing until a slowing economy sandbagged The word sandbagged is a colloquial expression used to describe a situation in which one is publicly rejected or corrected in the presence of peers, often causing embarrassment. revenues there as well. For the third quarter ended Jan. 31, Impco lost $7 million (64 cents a diluted share), compared with a loss of $4.4 million (42 cents) for the like year-earlier period. Revenues fell to $17.3 million from $22 million. Results for the fourth quarter ended April 30 haven't yet been released. Last July, Impco filed to raise $50 million in stock, partly to fund the operations of its fuel-cell division, Quantum Technologies. But it wasn't able to complete the offering. It was withdrawn shortly after Sept. 11. Instead, Impco was forced to raise more-expensive private-placement money, twice this year. In January, it raised $22.5 million to finance Quantum, and in May it raised another $18.8 million from institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. to fund acquisitions and debt reduction at the traditional Impco business. Financial Editor Anthony Palazzo pa·laz·zo n. pl. pa·laz·zi or pa·laz·zos A large splendid residence or public building, such as a palace or museum. [Italian, from Latin Pal can be reached at 323-549-5225, ext. 224, or at tpalazzo@labusinessjournal.com. Impco Technologies Inc. Stock Prices June 26, 2001 $32.50 June 26, 2002 $13.12 Note: Table made from line graph YEAR (April 30) 2001 * 2000 Revenue (millions) $103.9 $112.8 Total Expenses (millions) 125.6 106.7 Operating Income (millions) (21.7) 6.1 Net Income (millions) (13.1) 3.1 Earnings Per Share ($1.32) $0.33 * Company has not reported results for the year ended April 30, 2002. [GRAPH OMITTED] RELATED ARTICLE: SUMMARY Business: Systems for engines and fuel cells. Headquarters: Cerritos CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. : Robert Stemmler Market Cap: $165.2 million Divided Yield: N/A * Total Liabilities: $46.4 million P/E Ratio P/E ratio Current stock price divided by trailing annual earnings per share or expected annual earnings per share. Assume XYZ Co. sells for $25.50 per share and has earned $2.55 per share this year; $25.50 = 10 times $2.55. XYZ stock sells for ten times earnings. : NA Long-Term Debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. : $5.9 million * Impco Technologies does not pay a dividend |
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